Investors eyeing a purchase of Orexigen Therapeutics, Inc. (OREX) stock, but cautious about paying the going market price of $6.33/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2015 put at the $3 strike, which has a bid at the time of this writing of 70 cents. Collecting that bid as the premium represents a 23.3% return against the $3 commitment, or a 14.1% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Orexigen Therapeutics At $3, Earn 23.3%
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